Couples could be due £252 income boost this Valentine's Day just for living together
Valentine's Day may be the annual day of love and romance, but for married couples it could also bring a tax relief windfall, especially if one partner is a non-taxpayer. Marriage Allowance allows a non-tax paying spouse to move 10 per cent of their annual tax-free allowance to their basic-rate tax-paying partner.
HM Revenue and Customs (HMRC) guidance explains how the allowance is worth £252 over the 2024/25 financial year, but you can claim back up to four tax years - as long as you were eligible during that time, which could bag you an impressive £1,258. You cannot claim Marriage Allowance if you’re living together, but not married or in a civil partnership.
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More than 2.1 million couples currently benefit from Marriage Allowance, but thousands more may be missing out simply because they don’t realise they are eligible, particularly couples where one partner has either retired, has given up work to take on caring responsibilities, or is unable to work due to a long-term health condition.
Other couples who may be unaware that they could claim include those where one partner is working part-time or has a low-paid job and the other has income less than their Personal Allowance of £12,570.
Marriage Allowance saves couples money by allowing the lower or non-earner to reduce the amount of tax their partner pays. Most people have a Personal Allowance, normally £12,570 - the amount of income they do not have to pay tax on.
Marriage Allowance lets the lower earner transfer £1,260 of their Personal Allowance to their husband, wife or civil partner. This can reduce their tax by up to £252 annually.
To benefit from the tax relief in Scotland, one partner must have income less than £12,570 and the higher earning partner’s income must be between £12,571 and £43,662.
HMRC also advises people to claim online at GOV.UK as it means couples will receive 100 per cent of the tax relief due.
With around 68 per cent of people in their sixties married or in civil partnerships, many people in this age group may not realise they can claim Marriage Allowance if they have retired and their partner is still working.
Backdated Marriage Allowance payments
You can backdate your claim to include any tax year since April 5, 2020 that you were eligible for Marriage Allowance. Your partner’s tax bill will be reduced depending on the Personal Allowance rate for the years you’re backdating.
HMRC also explains that if your partner has died since April 5, 2020 you can still claim - phone the Income Tax helpline on 0300 200 3300, full details here.
HMRC adds: “If your partner was the lower earner, the person responsible for managing their tax affairs needs to phone.”
Below is each tax year and the value of the allowance:
2024/25 - £252
2023/24 - £252
2022/23 - £252
2021/22 - £252
2020/21 - £250
Full details about Marriage Allowance can be found on GOV.UK here.
